Fiat Chrysler wants to form a global giant with Renault.
Fiat Chrysler proposed on Monday to merge with France’s Renault to create the world’s third-biggest automaker and combine their investments in the race to make new electric and autonomous vehicles.
The merged company would reshape the global industry: it would make some 8.7 million vehicles a year, leapfrogging General Motors and trailing only Volkswagen and Toyota.
A deal would save 5 billion euros ($5.6 billion) for the merged companies each year by sharing research, purchasing costs and other activities, Fiat Chrysler said in a statement. It said the deal would involve no plant closures, but didn’t address potential job cuts.
The companies are largely complementary: Fiat Chrysler is stronger in the U.S. and SUV markets, while Renault is stronger in Europe and on electric vehicle developments.
Together, they would be worth almost $40 billion euros.
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